Why the MGC Pharma (ASX:MXC) share price has rocketed 9%

The MGC Pharma Ltd (ASX: MGC) share price is rocketing higher amid a broader rebound and North American product update to the market.

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MGC Pharmaceuticals Ltd (ASX: MXC) is one to watch this afternoon. The MGC Pharma share price has climbed 8.8% higher today and provided an afternoon product update.

Why is the MGC Pharma share price charging?

MGC Pharma yesterday provided its quarterly update to the market and saw its share price slide 3.3% lower to close at $0.058 per share. However, there was a strong recovery this morning as investors decided to buy back in.

The Aussie company became the first medicinal cannabis company to list on the London Stock Exchange following a £6.5 million (A$12 million) placement. The funds will be used to expedite its clinical trials and pursue continued growth initiatives.

MGC Pharma reported record quarterly sales of its proprietary phytomedicine product line which delivered $880,000 in revenue. That wasn't enough to boost the medicinal cannabis share higher on Wednesday as it slumped into the close.

However, today has been a new day and new share price gains for the medicinal cannabis group. The MGC Pharma share price jumped 8.8% higher today before providing an update on a new partnership deal.

What was today's update about?

The MGC Pharma share price is one to watch through to this afternoon's close after the latest product update. MGC Pharma's North American distribution partner, Glow LifeTech Ord Shs (CNSX: GLOW) has submitted an application to Health Canada.

The application seeks to obtain product licenses for ArtemiC as a Natural Health Product as announced by the Canadian group on 27 April 2021.

MGC Pharma released the results of a successful Phase II double-blind, placebo-controlled clinical trial in December 2020. Those results showed ArtemiC statistically significantly improved the clinical recovery of COVID-19 patients versus the placebo group.

MGC Pharma CEO Roby Zomer said, "The submission of this application to Health Canada by Glow is an important and exciting step in the classification of ArtemiC as a Natural Health Product".

"Approval of Glow's application if granted will further highlight the robustness and effectiveness of our clinical trial processes in relation to treatments that we are able to develop and bring to market", Mr Zomer added.

Foolish takeaway

The MGC Pharma share price is up 8.8% at the time of writing and is one to watch through to the close. Both the quarterly result and latest ArtemiC update will have investors keeping an eye on its shares in the coming days.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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